Sunday, April 1, 2012

Loss of Stakeholder Value and Damaging The Brand

The port dispute is estimated
to have cost thirty five million dollars to Auckland which is an indirect cost
on rate payers. A far greater cost maybe for Auckland brand, and if no
settlement is reached between the port company and the wharfies we can expect
to pay compound interest .
The lifting of the lockout notice by the port company has reduced the
impact on business and owning a small business. This is good news.
Liam Dann in the Weekend Herald poses the question, ‘Whose Side
Are You On?’ in reaction to the board’s internal divisions. This
question also applies to the board.

Most of the disruption is a
direct result of their decision to contract their workforce out which they told
us was legal. However, the employment court does not agree.
Whose side are they on, is a reasonable question? Are they working for
Auckland?
Given that this exercise to date, has achieved so much loss in
stakeholder value and has damaged our international brand, they may
win
an award for their achievements .
Working and investing in tourism, we understand how important the brand
is and how perception alone can quickly do so much damage. In the
interest of Auckland it behoves on all parties to achieve a durable settlement
which will last into the future The next move for Auckland and New
Zealand is a regional port and transport strategy, that involves Marsden Point
and Tauranga.